Coping with rising health insurance premiums

A CLIENT recently received the renewal letter of her Integrated Shield Plan (IP) and noticed a rise in her renewal premiums. She questioned why the hike applies only to private hospital coverage. Another client, who is in his mid-sixties and retired last year, decided to downgrade his IP eligible for private hospitals to one that covers restructured hospital wards to save costs.

These two clients are the epitome of an unpleasant reality facing the IP industry here: ever-rising healthcare costs and their impact on future affordability.

The IP insurer in question had increased the premiums of its IP for private hospitals by between 5 and 15 per cent from March 1, to "ensure the long-term sustainability of our offerings to our customers". Its partial rider which requires a 10 per cent co-payment saw a bigger jump of up to 30 per cent. The insurer didn't adjust the rates for the other three lower-tiered plans that cover treatment needs in ward class A and below in restructured hospitals.